Regulatory Alerts2022-03-15
Bank of Israel Adjustments to Proper Conduct of Banking Business Directives for New Banking Corporations
The Bank of Israel has amended Proper Conduct of Banking Business Directive no. 480 to tighten regulatory requirements for new banking corporations and those in formation. Key changes include reducing the limited license activity threshold to NIS 100 million, mandating annual board-approved exit plans, and revoking leniencies for IT management outsourcing and CEO dual roles. The amendments also align formation-stage requirements with existing directives on corporate governance, risk management, and cyber defense while updating liquidity and indebtedness rules.
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